clear benefits to being open to international trade

1. domestic and international trade

1.1. **main difference:** use of foreign currencies to pay crossing international borders

2. investments have a crucial impact..

2.1. country can build a new manufacturing plant >> jobs and taxes for the country and new manufactured goods for expor >> investment acts as a catalyst in economic growth.

2.2. **Dividends are** sums of money paid to shareholders of a corporation out of earnings

2.2.1. represent an expense for the host country and income for the investing country

3. After calculating all of the entries in its balance of payments

3.1. net inflow

3.2. net outflow of money

4. Correcting a dificit

4.1. **reducting imports** by imposing quotas and tariffs

4.2. devalue countrys' currency

5. Free trade agreements often cause...

5.1. trade wars, and sanctions or embargoes

5.2. European countries closely related economically and enjoying good relations have entered into monetary union and have a single currency

6. The key macroeconomic variables

6.1. exports

6.2. imporsts

6.3. the trade balance

6.3.1. favorable (exports more than imports)

6.3.1.1. Nations try to maintain it, which assures them of the means to buy necessary imports

6.3.2. unfavorable (imports more than exports)

6.4. exchange rates

7. In addition to visible trade there is also invisible trade, which involves the exchange of services between nations

7.1. invisible trade = the exchange of servers between nations

7.2. visible trade = export and import (of goods and merchandise)

8. insurance for cargoes’ voyage

8.1. reimbursed in the event of a disaster

8.2. **Insurance is** another service in which some nations specialize

9. mild and sunny climate

9.1. **Tourism is** another form of invisible trade.

10. millions of workers from southern Europe have gone to other countries

10.1. **immigrant remittance is** extremely important kind of invisible trade for some countries